If you put less than 20% down on a conventional loan, you can remove private mortgage insurance (PMI) by asking your servicer in writing once the principal balance reaches 80% of the home’s original value. It also ends automatically on the date the balance is scheduled to reach 78% if you’re current. If your home has gained value, a new valuation can get it removed sooner.
The rules for removing PMI from your mortgage use two measuring sticks. Federal law measures your balance against what you paid. Fannie Mae and Freddie Mac guidelines measure it against what the home is worth now, so on a $450,000 loan, the current-value route can arrive years earlier. Both requests go to your servicer, the company that collects your payment, which may not be the lender you closed with.
Key takeaways
- Federal law requires your servicer to cancel PMI at your written request once the balance reaches 80% of the home’s original value and you meet the payment-history and lien conditions. Your servicer must also end it automatically on the date the balance is scheduled to reach 78% if you’re current.
- On a $450,000 loan at 7.250% with a $109 monthly PMI premium, requesting cancellation at 80% instead of waiting for the 78% date saves 14 payments, or about $1,526.
- Fannie Mae also cancels PMI based on current value, using a valuation your servicer orders. The loan-to-value (your balance divided by the home’s value) has to be 75% once the loan is two years old, or 80% once it’s more than five years old.
- On a $500,000 purchase with 10% down, a current-value request at two years needs the home to appraise 17.6% above the purchase price, and at five years it needs 6.2%.
- On FHA loans with case numbers assigned on or after June 3, 2013, mortgage insurance doesn’t cancel on equity. If you put less than 10% down, the annual premium lasts the full loan term, and unless you sell, refinancing into a conventional loan is the typical way to end it.
When can you remove PMI?
Two sets of rules answer that question, and they measure different things.
The Homeowners Protection Act is federal law, and it measures your balance against the home’s original value, the lower of your contract price or the appraisal at purchase. Appreciation since closing doesn’t count. The law covers single-family principal residences with loans closed on or after July 29, 1999, and it doesn’t cover FHA or VA loans.
Fannie Mae and Freddie Mac publish their own servicing guidelines, which measure against current value. That’s a separate request, and it requires a new valuation that your servicer orders. When the home has appreciated, this route reaches its threshold before the federal one, because appreciation counts toward it.
The federal route applies to every loan the law covers. The current-value route depends on who owns your loan, which can be a different company from the one you pay. Your servicer can tell you, and Fannie Mae publishes a loan lookup tool that answers it directly. Freddie Mac offers an equivalent lookup on its homeowner site.
Three ways to get rid of PMI
As an example, take a $500,000 purchase price with a 10% down payment ($50,000), which means you have a $450,000 loan at 90% loan-to-value. PMI is estimated at 0.29% for a 740 to 759 credit score, costs $109 a month on that loan, and the payoff dates assume the scheduled payment every month with nothing extra.
| Route | What it measures | What you need | Timing on the example loan |
|---|---|---|---|
| Federal cancellation | Balance against original value | A written request at 80%, or automatically at 78% | With request, payment 104 or sooner with extra principal paid. Automatically at payment 118. |
| Current-value cancellation | Balance against a new appraisal | Two years and 75% loan-to-value, or more than five years and 80% | As early as two years, if the home has appreciated enough |
| Refinance | Balance against a new appraisal on a new loan | A new loan at or below 80% loan-to-value | Any time, with closing costs and a new rate |
The federal cancellation route costs the least. Having PMI automatically removed at 78% costs nothing, and the 80% request costs at most an appraisal if your servicer asks for proof of value. The current-value route always takes a valuation, which your servicer may charge you for. A refinance replaces your rate and adds closing costs, which matters if you want to keep your current rate. Canceling mortgage insurance is also one of the five moves in our guide to lowering your mortgage payment without refinancing, along with the escrow and property tax moves.
Route 1: the federal schedule, measured against what you paid
On the example loan, 80% of the $500,000 original value is $400,000, so the balance has to fall $50,000 from $450,000. The 78% automatic threshold is $390,000, a $60,000 drop.
Making only the scheduled payment at 7.250%, the balance reaches $400,000 at payment 104, which is 8.7 years in. It’s scheduled to reach $390,000 at payment 118, or 9.8 years. The two dates are 14 payments apart, and at $109 each, sending the written request at 80% instead of waiting for the 78% date saves about $1,526.
The request at 80% comes with conditions. You must be current and have a good payment history. Your servicer may also require you to certify that there are no subordinate liens and to show the property hasn’t lost value. The 78% termination is automatic and asks only that you’re current.
A third federal rule sets a final date. If PMI is still on the loan at the midpoint of the payment schedule, payment 180 on a 30-year loan, the servicer must end it the month after, as long as you’re current. On a loan making its scheduled payments, the 78% date comes first, at payment 118. The midpoint rule matters mainly where the payment schedule was modified or interest-only for a stretch.
Extra principal moves the 80% request date earlier. Paying the balance down to $400,000 on your own gives you the same right to request cancellation as reaching it on schedule. The 78% and midpoint dates follow the original payment schedule, so extra payments don’t change them.
Route 2: current value, measured against a new appraisal
If waiting 8.7 years for the federal schedule seems like too long to carry the PMI payment, there is another route worth considering. Under Fannie Mae’s servicing guidelines, you can request cancellation based on the home’s current value once the loan has been open long enough. That waiting period is called seasoning, and the threshold changes with it:
- Two to five years old: the balance must be 75% or less of current value.
- More than five years old: 80% or less of current value.
- Investment property or a 2-to-4 unit primary residence: 70% or less, and the loan must be more than two years old.
The payment history rules are specific: the prior month’s payment made, nothing 30 days late in the past 12 months, and nothing 60 days late in the past 24. Your servicer orders the valuation through Fannie Mae’s system. It has to include an inspection of both the interior and the exterior, so a drive-by or an automated estimate won’t qualify.
On the example loan, each threshold sets a minimum appraised value and the appreciation needed to reach it.
| When you ask | Balance | Required loan-to-value | Home must appraise at | Appreciation needed |
|---|---|---|---|---|
| Two years in | $440,963 | 75% | $587,951 | 17.6% |
| Five years in | $424,704 | 80% | $530,880 | 6.2% |
| Two years in, 2-to-4 unit primary residence | $440,963 | 70% | $629,948 | 26.0% |
For a one-unit home, the two-year threshold looks generous and is the harder one to hit, because 75% is a steep bar against a balance that has barely moved. By year five, the balance has come down, the bar relaxes to 80%, and the appreciation needed falls to about 6%.
If you’ve made substantial improvements to the property, Fannie Mae can waive the two-year waiting period, and the threshold becomes 80% instead of 75%. Ask your servicer about it if that applies to your home.
What if the appraisal comes in short?
If your servicer charges for the valuation, you pay whether or not it supports the threshold. A value that misses means the request is denied and the premium continues, and there’s no partial credit at 76%.
A short appraisal doesn’t close the door on cancellation. It means waiting until the balance comes down or the value goes up, then asking again. To avoid paying twice, confirm which threshold applies to your loan and get a realistic read on value before asking for the valuation. Your servicer can tell you the threshold, and recent sales of comparable homes nearby show roughly what an appraiser is likely to find.
Route 3: refinance into a loan without PMI
Refinancing replaces the loan, so a new appraisal supporting 80% loan-to-value ends PMI at closing. It also replaces your rate and adds closing costs, so it’s the right answer only when the new rate and the removed premium together beat what you have now, which makes it worth knowing what moves the rate on the new loan.
If your current rate is below today’s market, the premium you remove has to outweigh the rate you give up. A higher rate isn’t automatically the wrong answer when the total payment ends up lower, and a new 30-year term restarts the payoff clock, so weigh both. Our walkthrough of how to lower your mortgage payment prices that comparison.
What PMI costs while you wait
The premium is set by your credit tier and your loan-to-value when the loan closes, and it doesn’t change as you pay the loan down. Priced from the MGIC borrower-paid monthly card at the 740 to 759 FICO Score tier, on the same $500,000 price, here are the premiums and the paydown options to 80% compared by down payment.
| Down payment | Loan amount | PMI rate | Monthly cost | Paydown to reach 80% of original value |
|---|---|---|---|---|
| 3% | $485,000 | 0.55% | $222 | $85,000 |
| 5% | $475,000 | 0.44% | $174 | $75,000 |
| 10% | $450,000 | 0.29% | $109 | $50,000 |
| 20% | $400,000 | none | $0 | none |
A smaller down payment works against you twice. Putting 3% down instead of 10% raises the premium rate and the balance at the same time. The premium is $222 a month instead of $109, and there’s $35,000 more to pay down before the 80% threshold.
A credit score that improves after closing doesn’t lower the premium, and paying down the balance doesn’t either. Only cancellation ends it.
FHA MIP removal follows different rules
Canceling PMI is a conventional-loan process. FHA loans carry a mortgage insurance premium (MIP) instead, with a different structure and a different exit.
FHA Mortgagee Letter 2023-05 sets the annual premium for loans with case numbers assigned on or after March 20, 2023. On a 30-year loan with a base amount at or below $726,200, the premium and how long you pay it depend on your down payment.
| Down payment | Base loan | Loan-to-value at closing | Annual MIP | How long you pay it |
|---|---|---|---|---|
| 3.5% | $482,500 | 96.5% | 0.55% ($221/mo) | The full mortgage term |
| 10% | $450,000 | 90.0% | 0.50% ($188/mo) | 11 years |
Going from 3.5% down to 10% down saves $33 a month in MIP, and the bigger change is how long you pay. On FHA loans with case numbers assigned on or after June 3, 2013, the annual premium lasts for the life of the loan below 10% down. Paying the balance down doesn’t cancel it. Short of selling the home, refinancing into a conventional loan is the way off it.
There’s also an upfront premium of 1.75% of the base loan, which can be financed into the balance and comes to $8,444 at 3.5% down and $7,875 at 10% down. Our guide to mortgage insurance premiums and 2026 MIP costs covers the refund rules and the FHA Streamline Refinance option.
PMI removal requirements, step by step
The steps below will help determine which PMI removal path best suits your situation:
- Find your original value. It’s the lower of your contract price or the purchase appraisal value, and it’s on your closing documents. The federal thresholds measure against that figure, not whatever the home is worth today.
- Check the payment-history conditions. A 30-day late payment in the past year blocks a current-value request under Fannie Mae’s guidelines even when the equity is there.
- Ask your servicer which route your loan qualifies for. Federal cancellation and current-value cancellation are separate requests with separate requirements, so ask about both.
- Request the valuation only after confirming the threshold. On a current-value request, you may pay for it, so confirm whether your loan needs 75% or 80% first.
- Put the request in writing. The federal right at 80% starts with a written request, and a phone call doesn’t trigger it.
Determine which route best fits your loan
If you closed less than two years ago, the federal route is the main one open to you, unless substantial improvements qualify you for Fannie Mae’s early current-value request. Know both dates, and remember that extra principal moves the 80% request date earlier.
If you closed more than two years ago and your home has gained value, ask about the current-value request first, because it’s the only route that counts appreciation. Any valuation fee is a one-time cost, and the premium it ends is a monthly one.
If you have an FHA loan with less than 10% down and a case number from June 3, 2013, or later, cancellation isn’t available. Short of selling, refinancing into a conventional loan is the way out, and whether it’s worth doing depends on your needs and the rate you hold now.
If you haven’t bought yet, the down payment you choose sets a premium you can’t renegotiate later. Our guide to avoiding PMI with less than 20% down covers the structures that skip it entirely.
View mortgage rates for October 14, 2026
Frequently asked questions
How do I remove PMI from my mortgage?
You can remove PMI from a conventional mortgage by sending your servicer a written request once the balance reaches 80% of the home’s original value. If your home has gained value, you can request cancellation based on a new appraisal under Fannie Mae or Freddie Mac guidelines. Refinancing into a loan at or below 80% loan-to-value also ends it. Federal law ends PMI automatically on the date the balance is scheduled to reach 78% of original value, provided you’re current.
When can I request PMI removal?
You can request PMI removal as soon as your balance reaches 80% of the home’s original value, whether you get there on the scheduled payments or by paying extra principal. Under Fannie Mae’s current-value guidelines, you can request PMI removal after two years if the balance is 75% or less of a new appraised value. After five years, the threshold is 80%.
Does PMI automatically fall off?
Yes. Federal law requires your servicer to end PMI automatically on the date your balance is scheduled to reach 78% of the home’s original value, as long as you’re current on payments. On a $500,000 purchase with 10% down and a $450,000 loan at 7.250%, that’s payment 118. Waiting for that automatic date costs 14 more payments than requesting cancellation at 80%, so the automatic date works best as a backstop.
How much equity do I need to remove PMI?
For the federal request, you need the balance at 80% of the home’s original value, which is 20% equity measured against what you paid. For a current-value cancellation under Fannie Mae guidelines, you need 25% equity against a new appraisal if the loan is two to five years old. After five years, you need 20%.
Can I remove PMI if my home went up in value?
Yes, through the current-value route, since the federal route measures only against original value. Fannie Mae and Freddie Mac allow PMI cancellation based on a current appraisal once the loan has seasoned, at 75% loan-to-value between two and five years and 80% after five years. Your servicer orders the valuation, which has to include an interior inspection, and you may be charged for it.
Can I remove FHA mortgage insurance the same way?
No. The Homeowners Protection Act doesn’t cover FHA mortgage insurance premiums. On loans with case numbers assigned on or after June 3, 2013, they don’t cancel on an equity threshold. On a 30-year FHA loan with 10% or more down, the annual premium ends after 11 years. With less than 10% down, FHA mortgage insurance lasts for the full mortgage term, and unless you sell the home, refinancing into a conventional loan is the way to end it.
Does my credit score affect PMI removal?
No. Your credit tier sets the PMI rate at closing, and that rate stays fixed for the life of the policy. A higher score later doesn’t reduce what you pay. Your payment history does affect eligibility. Federal cancellation requires a good payment history, and Fannie Mae’s current-value route requires no payments 30 days late in the past 12 months and none 60 days late in the past 24 months.
Ready to find out which route your loan qualifies for?
Your original value, your loan’s age, your current property value, and who owns your loan decide which of the three routes is open to you right now. A Client Advisor can check all three and tell you whether an appraisal is worth ordering.
Contact JVM Lending for a free review of your PMI cancellation options.
All figures in this post are examples for illustrative purposes only. We aren’t tax or legal advisors, so talk to a tax or legal professional about your situation.
Sources
- Interest rate: Mortgage News Daily, 30-year fixed index, September 18, 2026.
- PMI cancellation and termination under the Homeowners Protection Act: Consumer Financial Protection Bureau, reviewed September 30, 2026.
- Current-value cancellation requirements: Fannie Mae Servicing Guide B-8.1-04, verified September 14, 2026.
- PMI pricing: MGIC borrower-paid monthly rate card, pulled September 10, 2026.
- FHA annual and upfront mortgage insurance premiums: HUD Mortgagee Letter 2023-05, verified September 14, 2026.
- Property tax range: Tax Foundation, effective rates on owner-occupied housing.
- Homeowners insurance averages: ValuePenguin, June 2026 ($2,151 at $350,000 dwelling coverage); Insurify, August 2026 ($2,808 at $300,000 dwelling coverage).
